China is set to remove a cap on foreign ownership of insurance asset management companies in draft rules revealed on Friday, reports the South China Morning Post. The China Banking and Insurance Regulatory Commission (CBIRC) will get rid of a 25% foreign ownership cap for companies, making it possible for non-domestic investors to increase their stakes to 100% and assume control. The regulator said it would collect public opinion on the rule change for a month.
“The relaxation will offer the same treatment to both foreign and local investors who are shareholders of insurance asset management companies. This will help to attract more high-quality international insurance companies and asset management firms to participate in the mainland insurance asset management industry,” the CBIRC said on its website.
Insurance asset management companies invest assets of China’s insurance companies, which were worth RMB 18.7 trillion ($2.9 trillion) as of the third quarter of this year, in bonds, stocks or properties. The country’s insurers have been allowed to set up such firms since 2004, and there were 31 of them as of the third quarter.
You must log in to post a comment.